The Federal Airports Authority of Nigeria (FAAN) has announced that cash transactions for all airport services will be banned nationwide, effective February 28, 2026.
The announcement was made in a statement signed by FAAN’s Director of Public Relations and Consumer Protection, Mr. Henry Agbebire, on Thursday in Lagos.
FAAN said the clarification became necessary after executives of various aviation unions visited the authority on Wednesday to seek further details on the planned cessation of cash transactions. The unions represented included the National Union of Air Transport Employees (NUATE), Air Transport Services Senior Staff Association of Nigeria, and the Association of Nigeria Aviation Professionals.
Agbebire noted that the engagement provided an opportunity for robust dialogue, reflecting FAAN’s open-door policy and commitment to inclusive stakeholder consultation.
FAAN Managing Director, Mrs. Olubunmi Kuku, reaffirmed the authority’s resolve to fully implement a cashless system across all airport payment points nationwide. She stressed that the move aligns with global best practices in aviation management and Federal Government directives, aimed at enhancing transparency, accountability, and operational efficiency.
Kuku referenced a Treasury Circular dated November 24, 2025, issued by the Office of the Accountant-General of the Federation and signed by Accountant-General Shamseldeen Ogunjimi, which mandated the cessation of cash transactions in all government dealings. She also noted that the directive follows approval by the Federal Executive Council for Ministries, Departments, and Agencies (MDAs) to discontinue physical cash collections and payments as part of broader public finance reforms.
“There is no going back on this decision. The cashless initiative aligns FAAN with national financial management reforms while positioning Nigeria’s airports for greater operational integrity, improved service delivery, and stronger revenue assurance,” Kuku said.
She added that the reform is part of FAAN’s broader strategic agenda to deepen stakeholder engagement, foster transparency, and build trust, ensuring that partners, unions, concessionaires, and service providers are carried along in key operational decisions.
The MD emphasized the benefits of a cashless system for the aviation ecosystem, including reducing leakages, improving transaction traceability, speeding up service delivery, and enhancing public confidence in airport operations. Addressing concerns about the use of Paystack as a payment platform, she clarified that it only serves as a gateway and that no revenue is paid into any Paystack account; all payments are directly transferred from POS terminals into designated Federal Government accounts.
At the conclusion of the engagement, union representatives expressed satisfaction with the explanations provided and acknowledged that the implementation framework is practical and workable.
NAN
